TSX:GWO
Readers are referred to the cautionary notes regarding Forward-Looking Information and Non-IFRS Financial Measures at the end of this release. All figures are expressed in Canadian
dollars, except as noted.
WINNIPEG, Feb. 11, 2016 /CNW/ - Great-West Lifeco Inc. (Lifeco) has
reported net earnings attributable to common shareholders of $683
million or $0.688 per common share for the three months ended December
31, 2015 compared to $657 million or $0.658 per common share for the
same period in 2014.
For the twelve months ended December 31, 2015, net earnings attributable
to common shareholders were $2,762 million, compared to $2,546 million
for the same period in 2014, an increase of 8.5%. This represents
$2.774 per common share for the twelve months ended December 31, 2015,
compared to $2.549 per common share for the same period in 2014.
Consolidated assets under administration at December 31, 2015 grew to
over $1.2 trillion, up $149 billion from December 31, 2014.
Highlights
-
Lifeco declared a quarterly common dividend of $0.3460 per common share
payable March 31, 2016, a 6.1% increase from the previous quarter.
-
Lifeco sales in the fourth quarter of 2015 of $39.0 billion were up 81%
from the same quarter in 2014:
-
Canada sales were $3.5 billion, up 5%, reflecting solid sales across all
lines of business.
-
Europe sales were $3.9 billion, up 24%, reflecting strong pension and
savings sales across all regions.
-
Great-West Financial sales were US$15.5 billion, up 287%, driven by an
increase in large plan sales in Empower Retirement.
-
Putnam gross sales were US$8.1 billion, down 12% overall. Institutional
sales increased 28%, while mutual fund sales decreased by 32%,
reflecting the decline in industry flows in the segments where Putnam
operates.
-
Lifeco maintained a strong ROE of 14.7% based on net earnings.
-
Lifeco's capital position remained very strong. The Great-West Life
Assurance Company reported a Minimum Continuing Capital Surplus
Requirements (MCCSR) ratio of 238% at December 31, 2015.
-
Lifeco announced today its intention, subject to the approval of the
Toronto Stock Exchange, to increase the previously announced normal
course issuer bid limit from 8 million common shares to 20 million
common shares.
OPERATING RESULTS
Consolidated net earnings of Lifeco include the net earnings of The
Great-West Life Assurance Company (Great-West Life) and its operating
subsidiaries London Life Insurance Company (London Life) and The Canada
Life Assurance Company (Canada Life); Great-West Life & Annuity
Insurance Company (Great-West Financial) and Putnam Investments, LLC
(Putnam), together with Lifeco's Corporate operating results.
CANADA
The Canada segment of Lifeco includes the operating results of the
Canadian businesses operated by Great-West Life, London Life and Canada
Life, together with an allocation of a portion of Lifeco's corporate
results. The three primary business units included in this segment are
Individual Insurance, Wealth Management and Group Insurance. Lifeco
provides accumulation, annuity, life, disability and critical illness
insurance products to individual and group clients.
Net earnings attributable to common shareholders for the fourth quarter
of 2015 were $262 million compared to $300 million in the fourth
quarter of 2014. For the twelve months ended December 31, 2015, net
earnings attributable to common shareholders were $1,195 million
compared to $1,228 million for the same period in 2014.
Total sales in the fourth quarter of 2015 of $3.5 billion were up from
$3.3 billion in the fourth quarter of 2014. The increase in sales
reflects strong Group sales in mid-size and large case markets,
continued strength in participating life sales and solid Wealth
Management sales in segregated funds, proprietary mutual funds and
single premium group annuities. Total sales for the twelve months
ended December 31, 2015 were $12.6 billion compared to $12.2 billion
for the same period in 2014.
Total Canada segment assets under administration at December 31, 2015
were $166 billion compared to $161 billion at December 31, 2014.
UNITED STATES
The United States operating results for Lifeco include the results of
Great-West Financial, Putnam and the insurance businesses in the United
States branches of Great-West Life and Canada Life, together with an
allocation of a portion of Lifeco's corporate results.
Great-West Financial, through the Empower Retirement brand, provides an
array of financial security products, including employer-sponsored
defined contribution plans, administrative and recordkeeping services,
individual retirement accounts, fund management and investment and
advisory services. Great-West Financial also provides life insurance,
annuity products and executive benefits products. Putnam provides
investment management, certain administrative functions and
distribution services through a broad range of investment products.
Net earnings attributable to common shareholders for the fourth quarter
of 2015 were $125 million, reflecting Great-West Financial net earnings
of $84 million and net earnings of $41 million for Putnam, compared to
$89 million in the fourth quarter of 2014. For the twelve months ended
December 31, 2015, net earnings attributable to common shareholders
were $409 million compared to $306 million for the same period in 2014.
Great-West Financial sales in the fourth quarter of 2015 were US$15.5
billion, up from US$4.0 billion in the fourth quarter of 2014,
primarily due to an increase in large plan sales. Approximately 50% of
the in-quarter sales increase related to two new clients with
approximately 140,000 participants. Sales for the twelve months ended
December 31, 2015 were US$43.2 billion compared to US$15.3 billion in
2014, an increase of 182%.
Putnam average assets under management for the three months ended
December 31, 2015 were US$151.2 billion compared to US$157.2 billion a
year ago, a decrease of 4%, primarily due to net asset outflows and the
impact of negative markets. Compared to the prior quarter, Putnam's
ending assets under management increased by US$1.7 billion. Net asset
outflows for the fourth quarter of 2015 of US$1.2 billion were
comparable to the same quarter in 2014, reflecting strong institutional
flows of US$1.1 billion, an increase of US$3.0 billion from the same
quarter last year, more than offset by net outflows for mutual funds
due to a decline of flows in the overall mutual fund sector.
Total United States segment assets under administration at December 31,
2015 were $808 billion compared to $697 billion at December 31, 2014.
EUROPE
The Europe segment comprises two distinct business units: Insurance &
Annuities and Reinsurance, together with an allocation of a portion of
Lifeco's corporate results. Insurance & Annuities provides protection
and wealth management products including payout annuities, through
subsidiaries of Canada Life in the U.K., the Isle of Man and Germany,
and through Irish Life Group Limited (Irish Life) in Ireland.
Reinsurance operates primarily in the U.S., Barbados and Ireland, and
is conducted through Canada Life, London Life and their subsidiaries.
Net earnings attributable to common shareholders for the fourth quarter
of 2015 were $303 million, up 11% compared to $274 million in the
fourth quarter of 2014. For the twelve months ended December 31, 2015,
net earnings attributable to common shareholders were $1,174 million
compared to $1,038 million for the same period in 2014.
Insurance & Annuities sales for the fourth quarter of 2015 were $3.9
billion, compared to $3.2 billion a year ago, an increase of 24%. The
increase reflects higher sales across most product lines in the U.K.,
Germany and Ireland. Sales for the twelve months ended December 31,
2015 were $19.5 billion compared to $12.4 billion for the same period
in 2014. The increase was primarily due to higher fund management
sales and higher sales across most other product lines as well as the
impact of the acquisition of The Equitable Life Assurance Society's
annuity business in the first quarter of 2015.
Total Europe segment assets under administration at December 31, 2015
were $238 billion compared to $205 billion at December 31, 2014.
LIFECO CORPORATE
The Lifeco Corporate segment includes operating results for activities
of Lifeco that are not associated with the major business units of
Lifeco.
Lifeco Corporate segment's net loss attributable to common shareholders
was $7 million in the fourth quarter of 2015 compared to a net loss of
$6 million in the fourth quarter of 2014. For the twelve months ended
December 31, 2015, the net earnings attributable to common shareholders
were a net loss of $16 million compared to a net loss of $26 million
for the same period in 2014.
QUARTERLY DIVIDENDS
At its meeting today, the Board of Directors approved a quarterly
dividend of $0.3460 per share on the common shares of Lifeco payable
March 31, 2016 to shareholders of record at the close of business March
3, 2016.
In addition, the Directors approved quarterly dividends on:
-
Series F First Preferred Shares of $0.36875 per share;
-
Series G First Preferred Shares of $0.3250 per share;
-
Series H First Preferred Shares of $0.30313 per share;
-
Series I First Preferred Shares of $0.28125 per share;
-
Series L First Preferred Shares of $0.353125 per share;
-
Series M First Preferred Shares of $0.3625 per share;
-
Series N First Preferred Shares of $0.1360 per share;
-
Series O First Preferred Shares of $0.108578 per share;
-
Series P First Preferred Shares of $0.3375 per share;
-
Series Q First Preferred Shares of $0.321875 per share;
-
Series R First Preferred Shares of $0.3000 per share; and
-
Series S First Preferred Shares of $0.328125 per share
all payable March 31, 2016 to shareholders of record at the close of
business March 3, 2016.
For purposes of the Income Tax Act (Canada), and any similar provincial
legislation, the dividends referred to above are eligible dividends.
GREAT-WEST LIFECO
Great-West Lifeco Inc. (TSX:GWO) is an international financial services
holding company with interests in life insurance, health insurance,
retirement and investment services, asset management and reinsurance
businesses. Lifeco has operations in Canada, the United States, Europe
and Asia through Great-West Life, London Life, Canada Life, Irish Life,
Great-West Financial and Putnam Investments. Lifeco and its
subsidiaries have over $1.2 trillion in consolidated assets under
administration and are members of the Power Financial Corporation group
of companies.
Basis of presentation
The consolidated financial statements of Lifeco have been prepared in
accordance with International Financial Reporting Standards (IFRS) and
are the basis for the figures presented in this release, unless
otherwise noted.
Cautionary note regarding Forward-Looking Information
This release may contain forward-looking statements. Forward-looking
statements include statements that are predictive in nature, depend
upon or refer to future events or conditions, or include words such as
"expects", "anticipates", "intends", "plans", "believes", "estimates"
and other similar expressions or negative versions thereof.
These statements may include, without limitation, statements about
Lifeco's operations, business, financial condition, expected financial
performance (including revenues, earnings or growth rates), ongoing
business strategies or prospects, and possible future actions by
Lifeco, including statements made with respect to the expected benefits
of acquisitions and divestitures. Forward-looking statements are based
on expectations, forecasts, predictions, projections and conclusions
about future events that were current at the time of the statements and
are inherently subject to, among other things, risks, uncertainties and
assumptions about Lifeco, economic factors and the financial services
industry generally, including the insurance and mutual fund
industries. They are not guarantees of future performance, and the
reader is cautioned that actual events and results could differ
materially from those expressed or implied by forward-looking
statements. Material factors and assumptions that were applied in
formulating the forward-looking information contained herein include
the assumption that the business and economic conditions affecting
Lifeco's operations will continue substantially in their current state,
including, without limitation, with respect to customer behaviour,
Lifeco's reputation, market prices for products provided, sales levels,
premium income, fee income, expense levels, mortality experience,
morbidity experience, policy lapse rates, reinsurance, arrangements,
liquidity requirements, capital requirements, credit ratings, taxes,
inflation, interest and foreign exchange rates, investment values,
hedging activities, global equity and capital markets, business
competition and other general economic, political and market factors in
North America and internationally. Many of these assumptions are based
on factors and events that are not within the control of Lifeco and
there is no assurance that they will prove to be correct. Other
important factors and assumptions that could cause actual results to
differ materially from those contained in forward-looking statements
include customer responses to new products, impairments of goodwill and
other intangible assets, Lifeco's ability to execute strategic plans
and changes to strategic plans, technological changes, breaches or
failure of information systems and security (including cyber attacks),
payments required under investment products, changes in local and
international laws and regulations, changes in accounting policies and
the effect of applying future accounting policy changes, unexpected
judicial or regulatory proceedings, catastrophic events, continuity and
availability of personnel and third party service providers, Lifeco's
ability to complete strategic transactions and integrate acquisitions
and unplanned material changes to Lifeco's facilities, customer and
employee relations or credit arrangements. The reader is cautioned
that the foregoing list of assumptions and factors is not exhaustive,
and there may be other factors listed in other filings with securities
regulators, including factors set out in Lifeco's 2015 Annual MD&A
under "Risk Management and Control Practices" and "Summary of Critical
Accounting Estimates", which, along with other filings, is available
for review at www.sedar.com. The reader is also cautioned to consider
these and other factors, uncertainties and potential events carefully
and not to place undue reliance on forward-looking statements. Other
than as specifically required by applicable law, Lifeco does not intend
to update any forward-looking statements whether as a result of new
information, future events or otherwise.
Cautionary note regarding Non-IFRS Financial Measures
This release contains some non-IFRS financial measures. Terms by which
non-IFRS financial measures are identified include, but are not limited
to, "operating earnings", "constant currency basis", "premiums and
deposits", "sales", "assets under management", "assets under
administration" and other similar expressions. Non-IFRS financial
measures are used to provide management and investors with additional
measures of performance to help assess results where no comparable IFRS
measure exists. However, non-IFRS financial measures do not have
standard meanings prescribed by IFRS and are not directly comparable to
similar measures used by other companies. Please refer to the
appropriate reconciliations of these non-IFRS financial measures to
measures prescribed by IFRS.
Further information
Selected financial information is attached.
Great-West Lifeco's fourth quarter conference call and audio webcast
will be held February 11, 2016 at 3:30 p.m. (ET). The call and webcast
can be accessed through www.greatwestlifeco.com or by phone at:
A replay of the call will be available from February 11, 2016 to
February 18, 2016, and can be accessed by calling 1-800-408-3053 or
905-694-9451 in Toronto (passcode: 6396358#). The archived webcast will
be available on www.greatwestlifeco.com from February 11, 2016 to February 10, 2017.
Additional information relating to Lifeco, including the 2015 audited
consolidated financial statements, Management's Discussion and Analysis
(MD&A), Annual Information Form (AIF) and CEO/CFO certification will be
filed on SEDAR at www.sedar.com.
FINANCIAL HIGHLIGHTS (unaudited)
(in Canadian $ millions except per share amounts)
|
|
|
As at or for the three months ended
|
|
For the twelve months ended
|
|
December 31
2015
|
September 30
2015
|
December 31
2014
|
|
December 31
2015
|
December 31
2014
|
Premiums and deposits:
|
|
|
|
|
|
|
|
Net premium income (Life insurance,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
guaranteed annuities and insured health
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
products)
|
$
|
6,162
|
|
$
|
5,891
|
|
$
|
5,501
|
|
|
$
|
24,501
|
|
$
|
21,222
|
|
|
Policyholder deposits (segregated funds):
|
|
|
|
|
|
|
|
|
Individual products
|
3,814
|
|
3,157
|
|
3,185
|
|
|
12,983
|
|
11,826
|
|
|
|
Group products
|
2,001
|
|
2,738
|
|
1,955
|
|
|
8,609
|
|
9,083
|
|
|
Self-funded premium equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Administrative services only contracts)(1)
|
665
|
|
639
|
|
654
|
|
|
2,625
|
|
2,603
|
|
|
Proprietary mutual funds and institutional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deposits(1)
|
15,480
|
|
16,807
|
|
12,729
|
|
|
56,257
|
|
45,306
|
|
Total premiums and deposits(1)
|
28,122
|
|
29,232
|
|
24,024
|
|
|
104,975
|
|
90,040
|
|
Fee and other income
|
1,333
|
|
1,241
|
|
1,161
|
|
|
5,058
|
|
4,422
|
|
Paid or credited to policyholders(2)
|
5,532
|
|
5,833
|
|
8,125
|
|
|
22,842
|
|
29,160
|
|
Earnings
|
|
|
|
|
|
|
Net earnings - common shareholders
|
$
|
683
|
|
$
|
720
|
|
$
|
657
|
|
|
$
|
2,762
|
|
$
|
2,546
|
|
|
Per common share
|
|
|
|
|
|
|
|
|
Basic earnings
|
0.688
|
|
0.724
|
|
0.658
|
|
|
2.774
|
|
2.549
|
|
|
|
Dividends paid
|
0.3260
|
|
0.3260
|
|
0.3075
|
|
|
1.304
|
|
1.230
|
|
|
|
Book value
|
20.07
|
|
19.40
|
|
16.80
|
|
|
|
|
Return on common shareholders' equity(3)
|
|
|
|
|
|
|
|
Net earnings
|
14.7
|
%
|
15.2
|
%
|
15.7
|
%
|
|
|
|
Total assets
|
$
|
399,935
|
|
$
|
389,935
|
|
$
|
356,709
|
|
|
|
|
|
Proprietary mutual funds and institutional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net assets(4)
|
252,480
|
|
239,050
|
|
216,271
|
|
|
|
|
Total assets under management(4)
|
652,415
|
|
628,985
|
|
572,980
|
|
|
|
|
|
Other assets under administration(5)
|
560,102
|
|
524,813
|
|
490,353
|
|
|
|
|
Total assets under administration
|
$
|
1,212,517
|
|
$
|
1,153,798
|
|
$
|
1,063,333
|
|
|
|
|
Total equity
|
$
|
25,260
|
|
$
|
24,534
|
|
$
|
21,897
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In addition to premiums and deposits reported in the financial
statements, the Company includes premium equivalents on self-funded
group insurance administrative services only (ASO) contracts and
deposits on proprietary mutual funds and institutional accounts to
calculate total premiums and deposits (a non-IFRS financial measure).
This measure provides useful information as it is an indicator of top
line growth.
|
(2)
|
Paid or credited to policyholders includes the impact of changes in fair
values of assets supporting insurance and investment contract
liabilities.
|
(3)
|
Return on common shareholders' equity is detailed within the "Capital
Allocation Methodology" section of the Company's December 31, 2015
Management's Discussion and Analysis.
|
(4)
|
Total assets under management (a non-IFRS financial measure) provides an
indicator of the size and volume of the overall business of the
Company. Services provided in respect of assets under management
include the selection of investments, the provision of investment
advice and discretionary portfolio management on behalf of clients.
This includes internally and externally managed funds where the Company
has oversight over the investment policies.
|
(5)
|
Other assets under administration (a non-IFRS financial measure)
includes assets where the Company only provides administration services
for which the Company earns fee and other income. These assets are
beneficially owned by clients and the Company does not direct the
investing activities. Services provided relating to assets under
administration includes recordkeeping, safekeeping, collecting
investment income, settling of transactions or other administrative
services. Administrative services are an important aspect of the
overall business of the Company and should be considered when comparing
volumes, size and trends.
|
|
|
CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in Canadian $ millions except per share amounts)
|
|
|
For the three months
ended December 31
|
|
For the years
ended December 31
|
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
Premium income
|
|
|
|
|
|
|
|
Gross premiums written
|
$
|
7,117
|
|
$
|
6,402
|
|
|
$
|
28,129
|
|
$
|
24,686
|
|
|
|
Ceded premiums
|
(955)
|
|
(901)
|
|
|
(3,628)
|
|
(3,464)
|
|
|
Total net premiums
|
6,162
|
|
5,501
|
|
|
24,501
|
|
21,222
|
|
|
Net investment income
|
|
|
|
|
|
|
|
Regular net investment income
|
1,670
|
|
1,516
|
|
|
6,271
|
|
6,010
|
|
|
|
Changes in fair value through profit or loss
|
(844)
|
|
2,545
|
|
|
(2,010)
|
|
7,527
|
|
|
Total net investment income
|
826
|
|
4,061
|
|
|
4,261
|
|
13,537
|
|
|
Fee and other income
|
1,333
|
|
1,161
|
|
|
5,058
|
|
4,422
|
|
|
8,321
|
|
10,723
|
|
|
33,820
|
|
39,181
|
|
Benefits and expenses
|
|
|
|
|
|
|
Policyholder benefits
|
|
|
|
|
|
|
|
Gross
|
6,060
|
|
5,335
|
|
|
22,553
|
|
19,363
|
|
|
|
Ceded
|
(546)
|
|
(513)
|
|
|
(2,000)
|
|
(1,928)
|
|
|
Total net policyholder benefits
|
5,514
|
|
4,822
|
|
|
20,553
|
|
17,435
|
|
|
Policyholder dividends and experience refunds
|
321
|
|
369
|
|
|
1,477
|
|
1,496
|
|
|
Changes in insurance and investment contract liabilities
|
(303)
|
|
2,934
|
|
|
812
|
|
10,229
|
|
|
Total paid or credited to policyholders
|
5,532
|
|
8,125
|
|
|
22,842
|
|
29,160
|
|
|
|
|
|
|
|
|
Commissions
|
584
|
|
514
|
|
|
2,218
|
|
2,084
|
|
|
Operating and administrative expenses
|
1,175
|
|
1,005
|
|
|
4,466
|
|
3,741
|
|
|
Premium taxes
|
92
|
|
86
|
|
|
339
|
|
339
|
|
|
Financing charges
|
73
|
|
77
|
|
|
303
|
|
304
|
|
|
Amortization of finite life intangible assets
|
37
|
|
34
|
|
|
146
|
|
132
|
|
|
Restructuring and acquisition expenses
|
7
|
|
7
|
|
|
35
|
|
32
|
|
Earnings before income taxes
|
821
|
|
875
|
|
|
3,471
|
|
3,389
|
|
Income taxes
|
66
|
|
164
|
|
|
460
|
|
628
|
|
Net earnings before non-controlling interests
|
755
|
|
711
|
|
|
3,011
|
|
2,761
|
|
Attributable to non-controlling interests
|
41
|
|
23
|
|
|
123
|
|
93
|
|
Net earnings
|
714
|
|
688
|
|
|
2,888
|
|
2,668
|
|
Preferred share dividends
|
31
|
|
31
|
|
|
126
|
|
122
|
|
Net earnings - common shareholders
|
$
|
683
|
|
$
|
657
|
|
|
$
|
2,762
|
|
$
|
2,546
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
|
|
|
Basic
|
|
$
|
0.688
|
|
$
|
0.658
|
|
|
$
|
2.774
|
|
$
|
2.549
|
|
|
Diluted
|
|
$
|
0.686
|
|
$
|
0.657
|
|
|
$
|
2.768
|
|
$
|
2.546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS (unaudited)
(in Canadian $ millions)
|
|
|
December 31
|
|
2015
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
2,813
|
|
$
|
2,498
|
|
Bonds
|
|
114,943
|
|
|
103,168
|
|
Mortgage loans
|
|
22,021
|
|
|
20,546
|
|
Stocks
|
|
7,873
|
|
|
7,820
|
|
Investment properties
|
|
5,237
|
|
|
4,613
|
|
Loans to policyholders
|
|
8,694
|
|
|
7,711
|
|
|
|
161,581
|
|
|
146,356
|
|
Funds held by ceding insurers
|
|
15,512
|
|
|
12,154
|
|
Goodwill
|
|
5,913
|
|
|
5,855
|
|
Intangible assets
|
|
4,036
|
|
|
3,625
|
|
Derivative financial instruments
|
|
461
|
|
|
652
|
|
Owner occupied properties
|
|
653
|
|
|
619
|
|
Fixed assets
|
|
298
|
|
|
228
|
|
Other assets
|
|
2,643
|
|
|
2,368
|
|
Premiums in course of collection, accounts and interest
|
|
|
|
|
|
|
|
receivable
|
|
3,553
|
|
|
3,056
|
|
Reinsurance assets
|
|
5,131
|
|
|
5,151
|
|
Current income taxes
|
|
69
|
|
|
48
|
|
Deferred tax assets
|
|
1,891
|
|
|
1,631
|
|
Investments on account of segregated fund
|
|
|
|
|
|
|
|
policyholders
|
|
198,194
|
|
|
174,966
|
|
Total assets
|
$
|
399,935
|
|
$
|
356,709
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Insurance contract liabilities
|
$
|
158,492
|
|
$
|
145,198
|
|
Investment contract liabilities
|
|
2,180
|
|
|
857
|
|
Debentures and other debt instruments
|
|
5,395
|
|
|
5,355
|
|
Capital trust securities
|
|
161
|
|
|
162
|
|
Funds held under reinsurance contracts
|
|
356
|
|
|
313
|
|
Derivative financial instruments
|
|
2,624
|
|
|
1,195
|
|
Accounts payable
|
|
1,755
|
|
|
1,480
|
|
Other liabilities
|
|
3,367
|
|
|
3,099
|
|
Current income taxes
|
|
492
|
|
|
737
|
|
Deferred tax liabilities
|
|
1,659
|
|
|
1,450
|
|
Investment and insurance contracts on account of
|
|
|
|
|
|
|
|
segregated fund policyholders
|
|
198,194
|
|
|
174,966
|
|
Total liabilities
|
|
374,675
|
|
|
334,812
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
|
|
|
|
|
Participating account surplus in subsidiaries
|
|
2,611
|
|
|
2,480
|
|
|
Non-controlling interests in subsidiaries
|
|
195
|
|
|
163
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
|
|
|
Preferred shares
|
|
2,514
|
|
|
2,514
|
|
|
|
Common shares
|
|
7,156
|
|
|
7,102
|
|
|
Accumulated surplus
|
|
10,431
|
|
|
9,134
|
|
|
Accumulated other comprehensive income
|
|
2,218
|
|
|
378
|
|
|
Contributed surplus
|
|
135
|
|
|
126
|
|
Total equity
|
|
25,260
|
|
|
21,897
|
|
Total liabilities and equity
|
$
|
399,935
|
|
$
|
356,709
|
|
Segmented Information (unaudited)
Consolidated Net Earnings
|
|
For the three months ended December 31, 2015
|
|
Canada
|
United
States
|
Europe
|
Lifeco
Corporate
|
Total
|
Income
|
|
|
|
|
|
|
Total net premiums
|
$
|
3,023
|
|
$
|
1,148
|
|
$
|
1,991
|
|
$
|
—
|
|
$
|
6,162
|
|
|
Net investment income
|
|
|
|
|
|
|
|
Regular net investment income
|
654
|
|
471
|
|
547
|
|
(2)
|
|
1,670
|
|
|
|
Changes in fair value through profit or loss
|
(7)
|
|
(320)
|
|
(517)
|
|
—
|
|
(844)
|
|
|
Total net investment income
|
647
|
|
151
|
|
30
|
|
(2)
|
|
826
|
|
|
Fee and other income
|
369
|
|
637
|
|
327
|
|
—
|
|
1,333
|
|
|
4,039
|
|
1,936
|
|
2,348
|
|
(2)
|
|
8,321
|
|
|
|
|
|
|
|
Benefits and expenses
|
|
|
|
|
|
|
Paid or credited to policyholders
|
2,799
|
|
1,084
|
|
1,649
|
|
—
|
|
5,532
|
|
|
Other (1)
|
819
|
|
674
|
|
354
|
|
4
|
|
1,851
|
|
|
Financing charges
|
29
|
|
37
|
|
7
|
|
—
|
|
73
|
|
|
Amortization of finite life intangible assets
|
16
|
|
17
|
|
4
|
|
—
|
|
37
|
|
|
Restructuring and acquisition expenses
|
—
|
|
4
|
|
3
|
|
—
|
|
7
|
|
Earnings (loss) before income taxes
|
376
|
|
120
|
|
331
|
|
(6)
|
|
821
|
|
Income taxes (recovery)
|
70
|
|
(8)
|
|
5
|
|
(1)
|
|
66
|
|
Net earnings (loss) before non-controlling interests
|
306
|
|
128
|
|
326
|
|
(5)
|
|
755
|
|
Non-controlling interests
|
40
|
|
2
|
|
(1)
|
|
—
|
|
41
|
|
Net earnings (loss)
|
266
|
|
126
|
|
327
|
|
(5)
|
|
714
|
|
Preferred share dividends
|
25
|
|
—
|
|
6
|
|
—
|
|
31
|
|
Net earnings (loss) before capital allocation
|
241
|
|
126
|
|
321
|
|
(5)
|
|
683
|
|
Impact of capital allocation
|
21
|
|
(1)
|
|
(18)
|
|
(2)
|
|
—
|
|
Net earnings (loss) - common shareholders
|
$
|
262
|
|
$
|
125
|
|
$
|
303
|
|
$
|
(7)
|
|
$
|
683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes commissions, operating and administrative expenses and premium
taxes.
|
|
For the three months ended December 31, 2014
|
|
Canada
|
United
States
|
Europe
|
Lifeco
Corporate
|
Total
|
Income
|
|
|
|
|
|
|
Total net premiums
|
$
|
2,839
|
|
$
|
855
|
|
$
|
1,807
|
|
$
|
—
|
|
$
|
5,501
|
|
|
Net investment income
|
|
|
|
|
|
|
|
Regular net investment income
|
638
|
|
371
|
|
507
|
|
—
|
|
1,516
|
|
|
|
Changes in fair value through profit or loss
|
695
|
|
217
|
|
1,633
|
|
—
|
|
2,545
|
|
|
Total net investment income
|
1,333
|
|
588
|
|
2,140
|
|
—
|
|
4,061
|
|
|
Fee and other income
|
349
|
|
522
|
|
290
|
|
—
|
|
1,161
|
|
|
4,521
|
|
1,965
|
|
4,237
|
|
—
|
|
10,723
|
|
|
|
|
|
|
|
Benefits and expenses
|
|
|
|
|
|
|
Paid or credited to policyholders
|
3,327
|
|
1,229
|
|
3,569
|
|
—
|
|
8,125
|
|
|
Other (1)
|
747
|
|
556
|
|
298
|
|
4
|
|
1,605
|
|
|
Financing charges
|
28
|
|
35
|
|
13
|
|
1
|
|
77
|
|
|
Amortization of finite life intangible assets
|
14
|
|
15
|
|
5
|
|
—
|
|
34
|
|
|
Restructuring and acquisition expenses
|
—
|
|
—
|
|
7
|
|
—
|
|
7
|
|
Earnings (loss) before income taxes
|
405
|
|
130
|
|
345
|
|
(5)
|
|
875
|
|
Income taxes (recovery)
|
83
|
|
35
|
|
48
|
|
(2)
|
|
164
|
|
Net earnings (loss) before non-controlling interests
|
322
|
|
95
|
|
297
|
|
(3)
|
|
711
|
|
Non-controlling interests
|
24
|
|
2
|
|
(3)
|
|
—
|
|
23
|
|
Net earnings (loss)
|
298
|
|
93
|
|
300
|
|
(3)
|
|
688
|
|
Preferred share dividends
|
23
|
|
—
|
|
6
|
|
2
|
|
31
|
|
Net earnings (loss) before capital allocation
|
275
|
|
93
|
|
294
|
|
(5)
|
|
657
|
|
Impact of capital allocation
|
25
|
|
(4)
|
|
(20)
|
|
(1)
|
|
—
|
|
Net earnings (loss) - common shareholders
|
$
|
300
|
|
$
|
89
|
|
$
|
274
|
|
$
|
(6)
|
|
$
|
657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes commissions, operating and administrative expenses and premium
taxes.
|
|
For the twelve months ended December 31, 2015
|
|
Canada
|
United
States
|
Europe
|
Lifeco
Corporate
|
Total
|
Income
|
|
|
|
|
|
|
Total net premiums
|
$
|
11,303
|
|
$
|
3,858
|
|
$
|
9,340
|
|
$
|
—
|
|
$
|
24,501
|
|
|
Net investment income
|
|
|
|
|
|
|
|
Regular net investment income
|
2,512
|
|
1,676
|
|
2,081
|
|
2
|
|
6,271
|
|
|
|
Changes in fair value through profit or loss
|
(358)
|
|
(532)
|
|
(1,120)
|
|
—
|
|
(2,010)
|
|
|
Total net investment income
|
2,154
|
|
1,144
|
|
961
|
|
2
|
|
4,261
|
|
|
Fee and other income
|
1,459
|
|
2,378
|
|
1,221
|
|
—
|
|
5,058
|
|
|
14,916
|
|
7,380
|
|
11,522
|
|
2
|
|
33,820
|
|
|
|
|
|
|
|
Benefits and expenses
|
|
|
|
|
|
|
Paid or credited to policyholders
|
9,991
|
|
4,138
|
|
8,713
|
|
—
|
|
22,842
|
|
|
Other (1)
|
3,143
|
|
2,515
|
|
1,349
|
|
16
|
|
7,023
|
|
|
Financing charges
|
116
|
|
144
|
|
42
|
|
1
|
|
303
|
|
|
Amortization of finite life intangible assets
|
59
|
|
69
|
|
18
|
|
—
|
|
146
|
|
|
Restructuring and acquisition expenses
|
—
|
|
12
|
|
23
|
|
—
|
|
35
|
|
Earnings (loss) before income taxes
|
1,607
|
|
502
|
|
1,377
|
|
(15)
|
|
3,471
|
|
Income taxes (recovery)
|
285
|
|
77
|
|
105
|
|
(7)
|
|
460
|
|
Net earnings (loss) before non-controlling interests
|
1,322
|
|
425
|
|
1,272
|
|
(8)
|
|
3,011
|
|
Non-controlling interests
|
111
|
|
10
|
|
2
|
|
—
|
|
123
|
|
Net earnings (loss)
|
1,211
|
|
415
|
|
1,270
|
|
(8)
|
|
2,888
|
|
Preferred share dividends
|
103
|
|
—
|
|
23
|
|
—
|
|
126
|
|
Net earnings (loss) before capital allocation
|
1,108
|
|
415
|
|
1,247
|
|
(8)
|
|
2,762
|
|
Impact of capital allocation
|
87
|
|
(6)
|
|
(73)
|
|
(8)
|
|
—
|
|
Net earnings (loss) - common shareholders
|
$
|
1,195
|
|
$
|
409
|
|
$
|
1,174
|
|
$
|
(16)
|
|
$
|
2,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes commissions, operating and administrative expenses and premium
taxes.
|
|
For the twelve months ended December 31, 2014
|
|
Canada
|
United
States
|
Europe
|
Lifeco
Corporate
|
Total
|
Income
|
|
|
|
|
|
|
Total net premiums
|
$
|
10,883
|
|
$
|
3,527
|
|
$
|
6,812
|
|
$
|
—
|
|
$
|
21,222
|
|
|
Net investment income
|
|
|
|
|
|
|
|
Regular net investment income
|
2,548
|
|
1,420
|
|
2,045
|
|
(3)
|
|
6,010
|
|
|
|
Changes in fair value through profit or loss
|
2,588
|
|
784
|
|
4,155
|
|
—
|
|
7,527
|
|
|
Total net investment income
|
5,136
|
|
2,204
|
|
6,200
|
|
(3)
|
|
13,537
|
|
|
Fee and other income
|
1,409
|
|
1,820
|
|
1,193
|
|
—
|
|
4,422
|
|
|
17,428
|
|
7,551
|
|
14,205
|
|
(3)
|
|
39,181
|
|
|
|
|
|
|
|
Benefits and expenses
|
|
|
|
|
|
|
Paid or credited to policyholders
|
12,676
|
|
4,901
|
|
11,583
|
|
—
|
|
29,160
|
|
|
Other (1)
|
2,916
|
|
1,994
|
|
1,237
|
|
17
|
|
6,164
|
|
|
Financing charges
|
115
|
|
140
|
|
48
|
|
1
|
|
304
|
|
|
Amortization of finite life intangible assets
|
55
|
|
57
|
|
20
|
|
—
|
|
132
|
|
|
Restructuring and acquisition expenses
|
—
|
|
3
|
|
29
|
|
—
|
|
32
|
|
Earnings (loss) before income taxes
|
1,666
|
|
456
|
|
1,288
|
|
(21)
|
|
3,389
|
|
Income taxes (recovery)
|
355
|
|
128
|
|
150
|
|
(5)
|
|
628
|
|
Net earnings (loss) before non-controlling interests
|
1,311
|
|
328
|
|
1,138
|
|
(16)
|
|
2,761
|
|
Non-controlling interests
|
88
|
|
6
|
|
(1)
|
|
—
|
|
93
|
|
Net earnings (loss)
|
1,223
|
|
322
|
|
1,139
|
|
(16)
|
|
2,668
|
|
Preferred share dividends
|
93
|
|
—
|
|
23
|
|
6
|
|
122
|
|
Net earnings (loss) before capital allocation
|
1,130
|
|
322
|
|
1,116
|
|
(22)
|
|
2,546
|
|
Impact of capital allocation
|
98
|
|
(16)
|
|
(78)
|
|
(4)
|
|
—
|
|
Net earnings (loss) - common shareholders
|
$
|
1,228
|
|
$
|
306
|
|
$
|
1,038
|
|
$
|
(26)
|
|
$
|
2,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes commissions, operating and administrative expenses and premium
taxes.
|
SOURCE Great-West Lifeco Inc.